HB 2752 — individual income tax; rate adjustment.

HB2752 - 542R - H-WaysH &Ver Means-Proposed    Fifty-fourth  Legislature                                            House WaysEngrossed &  Means      State of Arizona House of Representatives Fifty-fourth Legislature Second Regular Session                                                 Session H.B.    HOUSE BILL 2752       AN ACT   Amending Title 41, chapter 7, article 10, Arizona Revised Statutes, by adding section 41‑1275;

 amending PROPOSEDsection HOUSE43‑1011, OFArizona REPRESENTATIVESRevised AMENDMENTSStatutes; TO H.B.

2752relating (Reference to printedindividual bill)income  tax.     Page 1, line 4, strike "JLBC" insert "joint legislative budget committee" Line 14, strike "grown" insert "growth" Amend title to conform     BEN TOMA     2752TOMA 02/17/2020 01:54 PM C:

ED    (TEXT OF BILL BEGINS ON NEXT PAGE)   Be it enacted by the Legislature of the State of Arizona:

Section 1.  Title 41, chapter 7, article 10, Arizona Revised Statutes, is amended by adding section 41-1275, to read:

START_STATUTE41-1275.  Annual ongoing state general fund revenue;

joint legislative budget committee determination;

definitions A.  For each fiscal year beginning in fiscal year 2020‑2021, for the purpose of computing the individual income tax rate reduction pursuant to section 43‑1011, subsection E, the joint legislative budget committee shall:

1.  Calculate the growth limit for the following fiscal year.

2.  Calculate the amount of ongoing state general fund revenues for the following fiscal year.

3.  If the amount calculated in paragraph 1 of this subsection exceeds the amount calculated in paragraph 2 of this subsection, estimate the amount of structural surplus for the immediately following fiscal year.

4.  Multiply the amount estimated pursuant to paragraph 3 of this subsection by fifty percent.

B.  For the purposes of this section:

1.  "Growth limit" means the ongoing state general fund revenues for fiscal year 2019‑2020 as determined by the joint legislative budget committee, annually increased by the sum of the percentage change in inflation plus the percentage change in population growth.

2.  "Inflation" means the average annual change in the metropolitan Phoenix consumer price index published by the United States department of labor, bureau of labor statistics, for the most recently ended calendar year.

3.  "Population growth" means the year‑over‑year change in total population for this state for the most recently ended calendar year as estimated by the United States census bureau.

4.  "structural surplus" means the difference between ongoing state general fund revenues and ongoing state general fund expenditures after adjusting for revenue and expenditure increases as estimated by the joint legislative budget committee.

END_STATUTE Sec. 2.  Section 43-1011, Arizona Revised Statutes, is amended to read:

START_STATUTE43-1011.  Taxes and tax rates A.  There shall be levied, collected and paid for each taxable year on the entire taxable income of every resident of this state and on the entire taxable income of every nonresident that is derived from sources within this state taxes determined in the following manner:

1.  For taxable years beginning from and after December 31, 1996 through December 31, 1997:

(a)  In the case of a single person or a married person filing separately:

If taxable income is:               The tax is:

$0 - $10,000                        2.90% of taxable income $10,001 - $25,000                   $290, plus 3.30% of the excess over $10,000 $25,001 - $50,000                   $785, plus 3.90% of the excess over $25,000 $50,001 - $150,000                  $1,760, plus 4.80% of the excess over $50,000 $150,001 and over                   $6,560, plus 5.17% of the excess over $150,000 (b)  In the case of a married couple filing a joint return or a single person who is a head of a household:

If taxable income is:               The tax is:

$0 - $20,000                        2.90% of taxable income $20,001 - $50,000                   $580, plus 3.30% of the excess over $20,000 $50,001 - $100,000                  $1,570, plus 3.90% of the excess over $50,000 $100,001 - $300,000                 $3,520, plus 4.80% of the excess over $100,000 $300,001 and over                   $13,120, plus 5.17% of the excess over $300,000 2.  For taxable years beginning from and after December 31, 1997 through December 31, 1998:

(a)  In the case of a single person or a married person filing separately:

If taxable income is:               The tax is:

$0 - $10,000                        2.88% of taxable income $10,001 - $25,000                   $288, plus 3.24% of the excess over $10,000 $25,001 - $50,000                   $774, plus 3.82% of the excess over $25,000 $50,001 - $150,000                  $1,729, plus 4.74% of the excess over $50,000 $150,001 and over                   $6,469, plus 5.10% of the excess over $150,000 (b)  In the case of a married couple filing a joint return or a single person who is a head of a household:

If taxable income is:               The tax is:

$0 - $20,000                        2.88% of taxable income $20,001 - $50,000                   $576, plus 3.24% of the excess over $20,000 $50,001 - $100,000                  $1,548, plus 3.82% of the excess over $50,000 $100,001 - $300,000                 $3,458, plus 4.74% of the excess over $100,000 $300,001 and over                   $12,938, plus 5.10% of the excess over $300,000 3.  For taxable years beginning from and after December 31, 1998 through December 31, 2005:

(a)  In the case of a single person or a married person filing separately:

If taxable income is:               The tax is:

$0 - $10,000                        2.87% of taxable income $10,001 - $25,000                   $287, plus 3.20% of the excess over $10,000 $25,001 - $50,000                   $767, plus 3.74% of the excess over $25,000 $50,001 - $150,000                  $1,702, plus 4.72% of the excess over $50,000 $150,001 and over                   $6,422, plus 5.04% of the excess over $150,000 (b)  In the case of a married couple filing a joint return or a single person who is a head of a household:

If taxable income is:               The tax is:

$0 - $20,000                        2.87% of taxable income $20,001 - $50,000                   $574, plus 3.20% of the excess over $20,000 $50,001 - $100,000                  $1,534, plus 3.74% of the excess over $50,000 $100,001 - $300,000                 $3,404, plus 4.72% of the excess over $100,000 $300,001 and over                   $12,844, plus 5.04% of the excess over $300,000 4.  For taxable years beginning from and after December 31, 2005 through December 31, 2006:

(a)  In the case of a single person or a married person filing separately:

If taxable income is:               The tax is:

$0 - $10,000                        2.73% of taxable income $10,001 - $25,000                   $273, plus 3.04% of the excess over $10,000 $25,001 - $50,000                   $729, plus 3.55% of the excess over $25,000 $50,001 - $150,000                  $1,617, plus 4.48% of the excess over $50,000 $150,001 and over                   $6,097, plus 4.79% of the excess over $150,000 (b)  In the case of a married couple filing a joint return or a single person who is a head of a household:

If taxable income is:               The tax is:

$0 - $20,000                        2.73% of taxable income $20,001 - $50,000                   $546, plus 3.04% of the excess over $20,000 $50,001 - $100,000                  $1,458, plus 3.55% of the excess over $50,000 $100,001 - $300,000                 $3,233, plus 4.48% of the excess over $100,000 $300,001 and over                   $12,193, plus 4.79% of the excess over $300,000 5.  Subject to subsections B and C of this section, for taxable years beginning from and after December 31, 2006 through December 31, 2018: